Colt Group Ltd v Unicourt Wandsworth LLB [2020] EWHC 2549 (Ch) (25 September 2020)

Colt Group Ltd v Unicourt Wandsworth LLB [2020] EWHC 2549 (Ch) (25 September 2020)

Where the lease requires the tenant to insure and to reinstate, and insurance moneys are paid to the landlord, the landlord is obliged to pay over to the tenant such moneys as are reasonably required for reinstatement, subject to recovery if not used for that purpose. Declaratory relief is appropriate to clarify this obligation, given the absence of an express landlord covenant and ongoing concerns affecting assignment.

Citation
[2020] EWHC 2549 (Ch)
Parties
Claimant: Colt Group Limited; Defendant: Unicourt Wandsworth LLP
Jurisdiction
England and Wales
Judgment Date
25 September 2020
Procedural Posture
Part 8 Claim for Declaratory Relief / Reserved Judgment Following Trial
Outcome
Declaration granted in part; permission to amend claim form granted only to the extent necessary for the declaration.
Legal Topics
Insurance Provisions in Leases, Application of Insurance Proceeds, Declaratory Relief, Leasehold Assignment
Property Law Landlord and Tenant Insurance Provisions in Leases Application of Insurance Proceeds Declaratory Relief Leasehold Assignment

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Parties

Colt Group Limited

Claimant

Unicourt Wandsworth LLP

Defendant

Procedural Posture

Part 8 Claim for Declaratory Relief / Reserved Judgment Following Trial

Legal Issues

  1. 1 Whether the landlord is obliged to pay over insurance moneys to the tenant for reinstatement under the lease
  2. 2 Whether declaratory relief should be granted regarding the application of insurance proceeds

Ratio Decidendi

Where the lease requires the tenant to insure and to reinstate, and insurance moneys are paid to the landlord, the landlord is obliged to pay over to the tenant such moneys as are reasonably required for reinstatement, subject to recovery if not used for that purpose. Declaratory relief is appropriate to clarify this obligation, given the absence of an express landlord covenant and ongoing concerns affecting assignment.

Court Disposition

Declaration granted in part; permission to amend claim form granted only to the extent necessary for the declaration.

Orders

  • It is declared that in the event of an insured peril destroying or damaging the Property, following which the Tenant is required to rebuild or reinstate under the lease, any moneys paid by the insurer to the Landlord are required to be paid over to the Tenant insofar as those moneys are reasonably required for...
  • Permission to amend claim form granted only for the purpose of the declaration.